HomeMy WebLinkAboutFIN 2023-02-27 Item 1A - Budget - Monthly General Fund Update: December 2022City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Finance & Governance Committee
FROM: Tony Cullerton, Deputy Finance Director
CC: Mayor Ekberg
DATE: February 27, 2023
SUBJECT: December 2022 General Fund Departmental (Preliminary) Budget -to -
Actuals Report
Summary
The purpose of the December 2022 General Fund Financial Report is to summarize for the City
Council the general state of departmental expenditures and to highlight significant items. The
following provides a high-level summary of the departmental financial performance.
The December 2022 report is based on financial data available as of February 16th, 2023, for the
period ending December 31, 2022. While this report includes the most recent financial activity,
the numbers are preliminary. Interfund activity, accruals, and general ledger clean up are part of
the year-end process and is currently being completed.
Expenditures
In past we have reported actual spending compared to the allocated budget. With this being the
final month of the year, our comparisons are with Actual Spending compared to the Annual
Budget.
General Fund departmental expenditures totaled $61.7 million through December, which is $3.9
million less than the annual budget of $65.6 million. Department 20, which is transfers to other
funds, totaled $10 million, which is $820,994 less than the annual budget. Transfers to capital
project funds are transferred to capital project funds as needed for cash flow purposes. Debt
service transfers are done quarterly. Department 20 is projected to end the year under budget
due to a handful of minor transactions. Examples include:
• Transfer to Fund 103 (Residential Streets) — General Governmental Improvements for
ARPA grant revenue was $82k under budget. This is due to less expenditures in fund 103
than expected.
• Transfer to Fund 104 (Arterial Streets) of $400k was not done since it was not necessary.
This was a budget transfer from the adopted budget, only required if the fund needed
additional resources.
• Transfer to and 305 Public Safety Plan was $167k less than budget. The cost of the
PSRFA engine wasn't known when budget amendments were completed.
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INFORMATIONAL MEMO
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In total, the General Fund reported expenditures of $71.8 million, which is equivalent to 94% of
the annual budget at the completion of the year. All General Fund departments ended the year
below their YTD annual budget with the exception of Fire. As projected and previously reported,
Fire finished the year at 101.5% of budget resulting in an overage of $226,122.
Departmental Variances
Year to Date Department Expenditures Compared to Annual Budget Through December 2022:
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BUDGET
ACTUAL
Allocated Budget
%
2022
2022
2020
2021
2022
vs Actual
Expended
EXPENDITURES BY DEPARTMENT
Annual
Allocated
OVER/(UNDER)
City Council
385,826
385,826
351,396
338,693
356,579
(29,247)
92.4%
Mayor's Office
2,565,927
2,565,927
2,280,110
2,152,513
2,181,540
(384,387)
85.0%
Administrative Services
5,869,141
5,869,141
4,751,297
5,005,893
4,775,222
(1,093,919)
81.4%
Finance Department
3,347,587
3,347,587
2,402,140
2,434,453
3,067,184
(280,403)
91.6%
Recreation Department / Parks Maintenance
5,083,108
5,083,108
4,273,655
4,225,108
4,821,837
(261,271)
94.9%
Community Development (DCD)
4,732,212
4,732,212
3,278,151
3,910,667
4,239,663
(492,549)
89.6%
Municipal Court
1,597,482
1,597,482
1,292,626
1,209,940
1,565,287
(32,195)
98.0%
Police Department
19,844,123
19,844,123
17,682,031
17,927,963
18,861,177
(982,946)
95.0%
Fire Department
14,772,033
14,772,033
12,850,658
13,471,379
14,998,155
226,122
101.5%
Public Works Dept / Street Maintenance
7,434,770
7,434,770
6,379,120
6,583,077
6,883,267
(551,503)
92.6%
Subtotal
65,632,209
65,632,209
55,541,184
57,259,686
61,749,909
(3,882,300)
94.1%
Non Departmental
10,885,754
10,885,754
4,862,449
5,644,523
10,064,760
(820,994)
92.5%
Total Expenditures
76,517,963
76,517,963
60,403,633
62,904,209
71,814,669
(4,703,294)
93.9%
% of Year 100.0%
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INFORMATIONAL MEMO
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The graph below shows the Annual Budget to Actual Expenditures for the General Fund
departments.
City Council '
Mayor's Office MI
Administrative Services
Finance Department i
Recreation Department / Park Maintenance
Community Development (DCD) MEE
Municipal Court .
Police Department
Fire Department
Public Works Dept / Street Maintenance
0 3,000 6,000 9,000 12,000 15,000 18,000 21,000
Thousands
■ Actual Expenditures ■ Annual Budget
Per ordinance, the City adopts a biennial budget by fund. This is the required level of reporting
for external authoritative sources of oversight such as of the Washington State Auditor's office.
This level of reporting is also utilized for purposes of debt issuance and by other stake holders.
For managerial reporting and internal use, the City reports activity at the department level. This
provides more details and additional information used by decision makers within the city and those
charged with governess.
The table below reflects activity at the category level. While all five of the General Fund category
totals ended the year under budget, there were several line -item categories that finished the year
over budget. In an effort to provide an enhanced level of reporting, additional information is being
provided for category line items that ended the year with totals reflecting a budget overage of
more than 5% and $50,000.
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INFORMATIONAL MEMO
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General Fund
City of Tukwila
General Fund Expenditures
Year -to Date as of Dec 31, 2022
% of Year
100.0%
Category: Overtime
Variance: 18.3% and $403,071
Explanation: We have been tracking Overtime throughout the year and projected this line item
to end the year over budget. The overage is offset by the reduction in Salaries. The relationship
can be explained by unfilled positions leading to a reduction in Salaries and resulting in increases
to Overtime due to existing staff maintaining service levels with reduced staff.
Category: Pension - LEOFF
Variance: 11.1% and $102,285
Explanation: The LEOFF Pension rate is a calculation of inputs shared between the State,
employer, and employee. The budget determination takes into consideration the calculated rate
with projected salaries. A primary contribution to the $69,381 overage was the reestablishment of
minimum staffing levels for Fire that was supported by ARPA funding, which took place after the
budget was established. Due to the Salaries & Benefit Category trending under budget, a budget
amendment was not considered for this line item.
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BUDGET
ACTUAL
COMPARISON OF RESULTS
2022
Annual
2022
Allocated
2020
2021
2022
Allocated Budget
vs Actuals
OVER/(UNDER)
% Change
Expended
2020/2021
2021/2022
511 Salaries
32,902,451
32,902,451
28,119,885
27,887,462
30,114,781
(2,787,670)
91.5% 2,227,319
8.0%
512 Extra Labor
584,220
584,220
131,789
206,427
404,565
(179,655)
69.2% 198,138
96.0%
513 Overtime
2,200,115
2,200,115
1,367,623
2,274,124
2,603,186
403,071
118.3% 329,062
14.5%
515 Holiday Pay
515,500
515,500
443,224
429,309
490,172
(25,328)
95.1% 60,863
14.2%
521 FICA
2,276,955
2,276,955
1,739,528
1,774,345
1,917,780
(359,175)
84.2% 143,436
8.1%
522 Pension-LEOFF
920,517
920,517
1,020,215
953,421
1,022,802
102,285
111.1% 69,381
7.3%
523 Pension-PERS/PSERS
1,494,905
1,494,905
1,662,169
1,518,973
1,469,268
(25,637)
98.3% (49,704)
(3.3%)
524 Industrial Insurance
876,892
876,892
859,956
892,567
689,029
(187,863)
78.6% (203,538)
(22.8%)
525 Medical & Dental
7,551,216
7,551,216
6,486,004
6,901,878
7,312,010
(239,206)
96.8% 410,132
5.9%
526 Unemployment
0
0
93,070
45,019
37,205
37,205
- (7,813)
(17.4%)
528 Uniform/Clothing
8,525
8,525
4,734
6,732
9,085
560
106.6% 2,352
34.9%
Total Salaries & Benefits
49,331,296
49,331,296
41,928,197
42,890,258
46,069,884
(3,261,412)
93.4% 3,179,626
7.4%
531 Supplies
950,636
950,636
567,124
668,288
607,654
(342,982)
63.9% ($60,634)
(9.1%)
532 Repairs & Maint Supplies
299,025
299,025
313,144
254,967
382,733
83,708
128.0% $127,766
50.1%
534 Resale Supplies
10,000
10,000
235
0
859
(9,141)
8.6% $859
Null
535 Small Tools
41,250
41,250
133,261
107,173
175,409
134,159
425.2% $68,236
63.7%
536 Technology Supplies
13,000
13,000
52,295
70,391
96,274
83,274
740.6% $25,882
36.8%
537 Fleet Supplies
3,000
3,000
12,749
3,787
6,687
3,687
222.9% $2,900
76.6%
Total Supplies
1,316,911
1,316,911
1,078,807
1,104,606
1,269,615
(47,296)
96.4% $165,010
14.9%
541 Professional Services
7,575,918
7,575,918
6,228,735
6,683,905
6,697,140
(878,778)
88.4% $13,235
0.2%
542 Communications
458,739
458,739
481,591
448,927
515,745
57,006
112.4% 566,818
14.9%
543 Professional Development
252,921
252,921
404,980
394,404
390,831
137,910
154.5% ($3,573)
(0.9%)
544 Advertising
40,250
40,250
19,183
21,629
44,856
4,606
111.4% $23,227
107.4%
545 Rentals
478,484
478,484
549,703
426,952
320,578
(157,906)
67.0% ($106,374)
(24.9%)
546 Technology Services
348,291
348,291
783,678
888,918
807,405
459,114
231.8% ($81,512)
(9.2%)
547 Utilities
2,034,285
2,034,285
1,820,212
2,251,250
2,363,986
329,701
116.2% $112,735
5.0%
548 Repairs & Maint Services
2,185,367
2,185,367
1,801,240
1,768,899
2,348,284
162,917
107.5% 5579,385
32.8%
549 Miscellaneous
879,747
879,747
439,364
243,434
620,147
(259,600)
70.5% $376,713
154.7%
Total Services
14,254,002
14,254,002
12,528,686
13,128,317
14,108,972
(145,030)
99.0% 980,655
7.5%
561 Capital Outlay-Land0
0
0
0
893
893
- 0
-
563 Other Improvements
0
0
0
12,331
0
0
- 0
-
564 Machinery & Equipment
730,000
730,000
5,495
124,174
300,544
(429,456)
41.2% 176,370
142.0%
Total Capital Outlay
730,000
730,000
5,495
136,506
301,437
(428,563)
41.3% 164,932
120.8%
750 Transfers Out
10,885,754
10,885,754
4,862,449
5,644,523
10,064,760
(820,994)
92.5% 4,420,237
78.3%
Total Non Operating Expense
10,885,754
10,885,754
4,862,449
5,644,523
10,064,760
(820,994)
92.5% 4,420,237
78.3%
TOTAL EXPENDITURES
76,517,963
76,517,963
60,403,633
62,904,209
71,814,669
(4,703,294)
93.9% 8,910,460
14.2%
% of Year
100.0%
Category: Overtime
Variance: 18.3% and $403,071
Explanation: We have been tracking Overtime throughout the year and projected this line item
to end the year over budget. The overage is offset by the reduction in Salaries. The relationship
can be explained by unfilled positions leading to a reduction in Salaries and resulting in increases
to Overtime due to existing staff maintaining service levels with reduced staff.
Category: Pension - LEOFF
Variance: 11.1% and $102,285
Explanation: The LEOFF Pension rate is a calculation of inputs shared between the State,
employer, and employee. The budget determination takes into consideration the calculated rate
with projected salaries. A primary contribution to the $69,381 overage was the reestablishment of
minimum staffing levels for Fire that was supported by ARPA funding, which took place after the
budget was established. Due to the Salaries & Benefit Category trending under budget, a budget
amendment was not considered for this line item.
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INFORMATIONAL MEMO
Page 5
Category: Total Supplies
Variance: Under budget
Explanation: The Total Supplies category ended the year under budget. Three accounts within
the Supplies category exceeded the budget by more than 5% and $50,000. This is due to the
classification of budget allocation. The three accounts that exceeded budget (Repairs &
Maintenance Supplies, Small Tools, & Technology Supplies) combined, totaled $298,075 over
budget. This is offset by Supplies (531) finishing the year $349,283 under budget, suggesting that
a portion of the three account's budget was allocated to Supplies.
Category: Total Services
Variance: Under budget
Explanation: The Total Services category ended the year under budget. Four accounts within
the Services category exceeded the budget by more than 5% and $50,000. This is attributed to a
budget classification allocation. The five accounts that exceeded budget (Communications,
Professional Development, Technology Services, Utilities, and Repairs & Maintenance Services)
combined, totaled $1,146,648 over budget. This is offset by Professional Services and
Miscellaneous ending the year $919,275 & $267,708 respectively, under budget, as a result of a
portion of the four account's budget being allocated to Professional Services and Miscellaneous.
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